And now for the failures (mostly)

Still trying to sort out what makes a winner and what makes a loser when trading the Floor Trader Method. Here are some losers for comparison to yesterday's winners.

This SPY loser grazed the 18ema which I am finding exceedingly important for minimizing losers. However, upon inspection as SPY pulled back it did so on increasing volatility, demonstrating that the pullback had more force in it than can simply be generated by "profit-taking" or a short break in the buying. I checked the ranges of the bars on the pullback and in order they were: 41 cents, 50 cents, 42 cents, and 39 cents. I interpreted these ranges to be constant, but from just a glance at the chart, that down move on the 2nd bar (which had a 50 cent range), just LOOKS like an increase in volatility. Sometimes what's called for is not specificity, but just a quick impression.


The other loser I want to highlight was in AEM. This trade occurred with 10 min to spare in the session. Sometimes I have seen institutions complete their orders in just the nick of time, so I feel this was not a major factor contributing to this trade as a loser. Instead, I question the number of bars in the pullback, i.e. two. I don't know how valuable these spikes are in comparison to a gradual 3 -5 bar pullback that leads to a continued trend. More Experience Required.

And now, so as to be TOO one-sided, voila!, some winners!



Both 3 - 5 bar pullbacks on decreasing volatility with a pierced 18ema. Niiiiiice.

Have a great weekend!